1st Half 2024 Financial Results
July 31st 2024
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Today's presenters
Enrico Mistron | Andrea Maldi | Luca Amadini |
CEO | CFO | IR Manager |
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Agenda
2.Business Review
3.Financial review
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Executive Summary
Business Overview
Financial Results
1H 2024
Current Trading
The performance in 1H24 reflects the trend observed in 1Q24 with WHS performance facing difficulties, retail substantially in line with the previous year, and excellent performance from online channels including both direct web and marketplace.
NET SALES amount to €320.4 m (-9.4% vs LY or -8.0% c.Fx)
GROSS MARGIN at 51.2% increasing by 20 bps vs 1H23;
EBIT negative at -€5.5m (€3.6m positive or 1.0% in 1H23);
PBTamounts to -€12.0m(-9.6 m in 1H23).
NFP (ante IFRS16) at June '24 amounts to -€109.0m vs -€93.1 at Dec'23 (Bank debt -€112.7m vs -€90.1m at Dec'23 - Fair Value of Hedging instruments €3.7m vs -€3m at Dec'23);
NET WORKING CAPITAL amounts to €126.7m or 18.5% as % of Net Sales (€116.7m or 16.2% at Dec'23).
DOS B&M (W30) LFL YTD: +0.6% vs 2023
DOS Digital (W30) LFL YTD: +11.6% vs 2023
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Agenda
1.Executive summary
3.Financial review
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Net sales and Margins
EBIT handled the top-line deterioration better than in the past thanks to improved margin and cost base reduction
Performance (16.8)
Positive L4L DOS B&M and Digital performance only partially offset Wholesale drop in first quarter.
Sales decrease vs 1H23 was also influenced by negative currency effect of -€5.3 million and perimeter reduction -€11 million (DOS B&M + Franchising).
Solid improved margins and specific efficiencies in the cost structure, helped EBIT to better handle the loss of top-line
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B&M Distribution network
Rationalization of the Retail network almost completed
- 25 Net Closures
Footprint at 30 June.'24 results smaller by 25 doors in respect to 31 Dec.'23 due to:
- #6 DOS net closures partially contributed to the perimeter effect, which amounts to a total of -€8.5
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million, with the majority of this (€6.6 million) is due to closures in FY23 (60). This loss is only partially mitigated by a +0.7% increase in B&M LFL (€3.7 million).
New #3 doors opened under Distribution agreements signed mainly in new strategic regions
#22 Franchise net closures mainly in European countries. result in negative -€2.5 million perimeter effect
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Net sales by channel
Wholesale still drives first half negative performance
€m
WHOLESALE: (16.0%) YoY
- Slightly recover in respect to first quarter thanks to 2nd quarter in line with LY.
- Double digit decrease mainly driven by:
- Negative double digit SS24 initial order intake
- In season re-orders slightly higher vs previous year
(16.0%) | (15.2%) | (5.4%) | 29.9% | (9.4%) |
(14.5%) c.Fx | (13.8%) c.Fx | (4.2%) c.Fx | 30.1% c.Fx | (8.0%)c.Fx |
NET SALES BREAKDOWN
WHOLESALE 49% | FRANCHISING 7% | DOS B&M 34 % | DOS Digital 10%
FRANCHISING: (15.2%) YoY
- Sales affected by negative perimeter (-€2.5 mln) and LFL performance -3.3%.
DOS B&M: (5.4%) YoY
- Negative by 5.4% vs LY driven by perimeter reduction -€8.5m only partially offset by positive LFL performance (€3.7m or 0.7%).
DOS Digital: 29.9% YoY- weight on total sales increased by 2.9 p.p in respect to LY
- Consistently with positive first quarter performance, Dos Digital channel delivered 29.9% increase vs LY thanks to positive LFL performance by 8.5%, supported by new five Marketplace doors opened in the last twelve months coupled with the full deploy of the renewed GEOX.COM e-commerce website.
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Net sales by region | ITALY: (9.9%) YoY | |||||||
Performance still negative in all geographies | • | Wholesale and Franchising double digit negative due to weak order intake | ||||||
€m | • | DOS Online, delivered strongly positive performance in terms of L4L (+19.6%) | ||||||
whereas DOS B&M L4L slightly negative.. | ||||||||
EUROPE: (1.7%) YoY | ||||||||
• Wholesale and Franchising partially recover in respect to first quarter but still | ||||||||
• | negative mainly driven by DACH area's weak performance. | |||||||
DOS positive thanks to both B&M LFL (+4.2%) and Digital LFL (+11.4%) coupled with | ||||||||
new Online doors opening. | ||||||||
NORAM: (13.7%) YoY | ||||||||
• Wholesale double digit negative. | ||||||||
• | The rationalization of the Canada doors largely completed by the end of FY23 | |||||||
(9.9%) | (1.7%) | (13.7%) | (20.6%) | (9.4%) | • | affected significantly the DOS B&M sales in FY24 | ||
DOS digital delivered positive sales by 5.1% vs LY | ||||||||
(9.9%)c.Fx | (2.0%)c.Fx | (13.2%)c.Fx | (15.5%)c.Fx | (8.0%)c.Fx | ||||
NET SALES BREAKDOWN
ITALY 28% | EUROPE 46% | NORAM 3% | ROW 23%
ROW: (20.6%) YoY
- The RoW area delivered negative performance across all distribution channels, primarily due to the ongoing economic downturn in China area and the geopolitical conflicts in Russia and the MEA regions
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